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PERSON TO BUSINESS PAYMENTS ON PERSON TO BUSINESS PAYMENTS ON THE WEBTHE WEB
PRESENTATION TOTREASURY MANAGEMENT ASSOCATION OF CANADAVANCOUVER, BRITISH COLUMBIA24 JUNE 2005
THE CANADIAN SOLUTIONTHE CANADIAN SOLUTION
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MESSAGESMESSAGES
• This is the Canadian solution
• INTERAC Online is not debit
• eCommerce in Canada is real
• Consumers see value
• Merchants see value
• Roll out just started
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PRESENTATION PRESENTATION CONTENTCONTENT
• Acxsys Corporation Background
• Industry Background
• The Solution
• Value Proposition
• Project Timelines
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ACXSYS COPORATIONACXSYS COPORATION
• Formed in 1996 and owned by:
• The architects of INTERAC Association
CREDIT UNION CENTRAL OF CANADA
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ACXSYS COPORATIONACXSYS COPORATION
ACXSYS INTERACASSOCIATION
FUTUREPARTNERSHIPS
ROYALTY-FREEFOR-PROFIT
SERVICEPROVIDER
BUSINESSDEVELOPER
CORPORATION
BRAND
IMN
LICENSOR OWNER
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NEW BUSINESSESNEW BUSINESSES
• Cross Border Debit
• INTERAC Email Money Transfer Service
• INTERAC Online
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417
1,100
2,000
2,400
3,000
0
500
1,000
1,500
2,000
2,500
3,000
3,500
1999 2000 2001 2002 2003
Val
ue o
f Pu
rcha
ses
($00
0,00
0)
0
500
1,000
1,500
2,000
2,500
3,000
3,500
Num
ber
of H
ouse
hold
s ('00
0)
Value of Purchases Number of Households
GROWTH IN INTERNET GROWTH IN INTERNET SPENDINGSPENDING
Source: Statistics Canada
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WHERE ARE THEY BUYINGWHERE ARE THEY BUYING
• Travel
• Consumer Electronics
• Home Products
• Apparel
• Computer Hardware / Software
% of Total1
14%
13%
13%
11%
9%
1. Source: Forrester Research, October 2003
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CANADIANS USE DEBIT MOSTCANADIANS USE DEBIT MOST
Source: Bank of International Settlements
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THE COMPETITIONTHE COMPETITION
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DIFFERENCESDIFFERENCES
1. Real time
2. Automatic re-direct back to merchant
3. Ubiquitous INTERAC-branded service
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INTRODUCING INTRODUCING INTERACINTERAC ONLINEONLINE
• A new online payment service that allows consumers to pay for goods and services on the Internet directly from their bank accounts
• Alternative to existing payment options
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SERVICE TOURSERVICE TOUR
www.interaconline.com
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RELATIONSHIP MODELRELATIONSHIP MODEL
Consumer
Financial Institution
Acquirer
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INTERACINTERAC DIRECT PAYMENT DIRECT PAYMENT VERSUSVERSUS
INTERACINTERAC ONLINE ONLINEFACTOR
SERVICE PROVIDER
COST vs. PRICE
AUTHENTICATION
HARDWARE
LIABILITY FOR FRAUD
INTERAC Direct Payment
INTERAC Association
Non-profit / 3B txn
Card & PIN
Terminals / PIN Pads
Voluntary DCCP
INTERAC OnlineINTERAC Online
AcxsysAcxsys
For profit / ? txnFor profit / ? txn
Login ID & PasswordLogin ID & Password
NoneNone
Mandatory DCCPMandatory DCCP
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CONSUMER VALUECONSUMER VALUE
• Canadians spent $3B+ on Internet shopping in 20031
• 75% of these shoppers indicate concern about Internet transactions1
• 73% of online shoppers or online bankers are interested in the service2
• Provides options2
• No need for parent’s credit card2
• No need to worry about debt2
1. Source: Statistics Canada, September 20042. Strategic Counsel, October 2004
KEY DRIVERSKEY DRIVERS
Security Security
Freedom Freedom
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MERCHANT VALUEMERCHANT VALUE
• Enhance current eCommerce strategy
• No authentication requirement
• Leverages existing eCommerce investment
• Help SME compete
• New revenue stream
• GOOD FUNDS MODEL
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COST OF NO GOOD FUNDS COST OF NO GOOD FUNDS MODELMODEL
Source: Cybersource, September 2004
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VALUE OF GOOD FUNDS VALUE OF GOOD FUNDS MODELMODEL
Source: Cybersource, September 2004
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2020
PROJECT STATUS
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ISSUER ROLL OUT SCHEDULEISSUER ROLL OUT SCHEDULE
Mar Apr May Jun July Sep Oct Nov Dec2005
RBC Royal Bank
Scotiabank
BMO
TD Canada Trust
Aug
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ACQUIRER STATUSACQUIRER STATUS
• Two Acquirers signed
• Three Acquirers receiving inquiries from merchants and third party providers
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COMMITTED MERCHANTSCOMMITTED MERCHANTS
… many more on the way!
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CONSUMER MARKETING CONSUMER MARKETING ACTIVITIESACTIVITIES
Phase 1: Back to School Campaign
Phase 2: Holiday Season
July Sep Oct Nov Dec2005 Aug
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MESSAGES RECEIVED ?MESSAGES RECEIVED ?
• Unique Canadian offering
• Not debit as we know it
• Canadians are buying online
• Value exists
• It’s not too late to participate
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QUESTIONS?QUESTIONS?
Barry CampbellDirector, Business Development
Acxsys Corporation(416) 869-5093
www.interaconline.com